Aeon Metals — Investor Presentation (March 2017)
21 slides from Aeon Metals's investor presentation, Mar 14, 2017
Slide 1: Walford Creek: Largest Cobalt Sulphide Resource in Australia
WALFORD CREEK Largest Cobalt Sulphide Resource in Australia 14th March 2017
Slide 2: Important Information
2 IMPORTANT INFORMATION This document has been prepared by Aeon Metals Limited (Aeon) for the purpose of providing a comprehensive company and technical overview to interested analysts and investors. This document is not a prospectus and should not be considered an offer or an invitation to acquire
Slide 3: Queensland Asset Base
3 QUEENSLAND ASSET BASE FLAGSHIP WALFORD CREEK PROJECT 100% Large Global JORC Resource1 296,000t of copper 60kt of cobalt 623,000t of zinc 626,000t of lead 55moz of silver Walford PEA completed on Vardy Zone Creek in Feb 2017 Mt Isa LOM production of 38kt copper, 29kt zinc, and 3kt
Slide 4: Walford Creek
4 WALFORD CREEK
Slide 5: Advanced, Large Base Metals Resource
5 ADVANCED, LARGE BASE METALS RESOURCE LARGE SEDIMENT HOSTED MINERAL SYSTEM Walford Creek Global Resources (March 2015) Mineralisation is both structurally and Walford Creek 2014-5 Resource Estimates lithologically controlled – Fish River Category Mt Cu % Pb % Zn % Ag g/t Co % Fault. Potential f
Slide 6: +25km Mineralised Fault Corridor
6 +25KM MINERALISED FAULT CORRIDOR Current Resource ~4km 2015 Resource Estimates Mineralised Zones AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 7: High Grade Vardy Resource
7 HIGH GRADE VARDY RESOURCE Near surface/close to fault. Vardy Resource Statement (December 20161) On 25 October, 2016 a new high- Walford Creek Vardy Resource Statement grade Resource announced. 3 Category Volume m Mt Cu % Pb % Zn % Ag g/t Co % Pyrite % This was upgraded again in Measured 284,6
Slide 8: Vardy Zone PEA Summary
8 VARDY ZONE PEA SUMMARY PEA Announced 15 Feb 20171,2 600ktpa throughput plant resulting in life-of mine (“LOM”) production of 38kt copper, 29kt zinc, and 3kt cobalt metals in concentrate. Projected life of mine revenue from copper, zinc, silver and cobalt of estimated at $579M. Operating cost
Slide 9: 2017 Drill Campaign
9 2017 DRILL CAMPAIGN Extension drilling to the east. Vardy Infill Extension drilling to the west: Key zones where geological conditions match Vardy Zone Highly prospective upside for Resource/LOM AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au extension.
Slide 10: Cobalt = Power Storage
10 COBALT = POWER STORAGE Demand Cobalt is consumed by major industries with rechargeable lithium-ion batteries becoming a major Co use. “The problem with existing lead- acid batteries is that they suck” – Elon Musk 2016 global demand = ~93kt Batteries were ~11% of Co consumption in 2002, and
Slide 11: 60kt Global Cobalt Resource
11 60KT GLOBAL COBALT RESOURCE Cobalt consistent throughout current Walford Global Resource. Highest cobalt values generally associated with copper. Cobalt occurs within pyrite lenses. Cobalt assays not conducted by WMC on their drilling; ~ half the holes west of Vardy have no cobalt assays.
Slide 12: Largest Cobalt Sulphide Resource in Australia
12 LARGEST COBALT SULPHIDE RESOURCE IN AUSTRALIA X2 0.18 Vardy, QLD 0.16 Millenium, Qld 0.14 Savannah, WA 0.12 Mutooroo, SA Walford Creek, QLD 0.10 Cobalt Grade (% Co) Thackaringa, NSW Nova-Bollinger, WA 0.08 0.06 Basil, NT Maroochydore, WA 0.04 0.02 Mount Gunson, SA Rocklands, Qld 0.00 0 10 20 30 4
Slide 13: Australian Laterites vs Sulphides
13 AUSTRALIAN LATERITES VS SULPHIDES 0.18 Vardy, QLD Laterites = High pressure acid leach Sulphides = Atmospheric leach or roast 0.16 2017 drilling to increase Resource tonnage Atmospheric leach Millenium, Qld 0.14 Mt Thirsty, WA KNP Co zones, WA Savannah, WA 0.12 Syerston, NSW Mutooroo, SA Murrin M
Slide 14: Large Scale Project Potential
14 LARGE SCALE PROJECT POTENTIAL Detailed technical work 2.5mtpa Global Resource Pit Shell vs Vardy PEA Pit Shell undertaken to assess mining and roasting of cobalt rich pyrite ore: ~67% overall cobalt recovery achieved. Confidence recovery to improve with fresh samples. Indicative 2.5mtpa pit
Slide 15: Next Steps
15 NEXT STEPS Vardy Development: QUALITY RESOURCE BASE Cu-Co METAL LEVERAGE Corporate: Cobalt roasting assessment in parallel to Vardy development Active work on capital structure Unlock value of extensive Queensland exploration tenements COUNTER CYCLICAL AEON METALS LIMITED: ASX: AML | www.ae
Slide 16: Board of Directors & Management
16 BOARD OF DIRECTORS & MANAGEMENT PAUL HARRIS HAMISH COLLINS STEPHEN LONERGAN IVAN WONG DAN JOHNSON CHAIRMAN MANAGING DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR EXPLORATION MANAGER 25 years’ experience in 24 years’ combined More than 30 years More than 20 years More than 30 years financial market
Slide 17: Capital Structure & Shareholder Register
17 CAPITAL STRUCTURE & SHAREHOLDER REGISTER / / / / $0.185 347.83M $64.3M $4.0M $33.5M SHARE PRICE SHARES MARKET CAP CASH LIMITED (A$) 1 OUTSTANDING (A$) 1 (A$) 3 RECOURSE 136.25m 2 VENDOR DEBT4 (A$) VENDOR WARRANTS TOP 10 SHAREHOLDERS1 TOP 5 SHAREHOLDERS1 HSBC Custody Nominees (OCP Holdings) 22.73%
Slide 18: Appendices
18 APPENDICES
Slide 19: Appendix 1: Competent Person Statement
19 APPENDIX 1: COMPETENT PERSON STATEMENT The data in this report that relates to Mineral Resource Estimates for the Walford Creek Deposit and Vardy Zone Deposit is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and wh
Slide 20: Appendix 2: PEA Assumptions
20 APPENDIX 2: PEA ASSUMPTIONS Economic and Commodity Price Assumptions Item Value Exchange Rate (US$:A$) 0.725 Commodity Prices Copper (US$/lb) 3.30 Zinc (US$/lb) 1.25 Lead (US$/lb) 0.86 Silver (US$/oz) 20.00 Cobalt (US$/lb) 20.41 AEON METALS LIMITED: ASX: AML | www.aeonmetals.com.au
Slide 21: Appendix 3: North-West QLD Base Metals Assets
21 APPENDIX 3: NORTH-WEST QLD BASE METALS ASSETS Extensive exploration tenement portfolio in proven base metals province of North-West Queensland Priority: Walford Creek Project Development Large base metal JORC Inferred & Indicated Resource – upgrade imminent Shallow, open pittable deposit Co